Callison Renovation & Repositioning

Renovation & Repositioning Strategic Responses for Retail Centers

Scottsdale Fashion Square

Before you start — Assess the Property

How can the site be maximized?

What are new revenue sources you can create by adding uses?

How can you refine the program and leasing strategy?

How can you create and reinforce a strong identity?

What can you do to refresh the appearance?

What will it take to differentiate your property from the competition?

Before After

Ala Moana CenterCreating Value

After

Ala Moana Center

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Before

Ala Moana Center

Before

After

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Ala Moana Center

After After

After – 2008After – 2008

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Ala Moana Center

ReSULtS — FiRSt RenovAtion AnD eXPAnSion in 1999

Sales per square foot averaged $1,000 — nearly $700 above industry standard

Remodeled 300,000 sf was fully leased despite significant fall-off in tourism

ReSULtS — SeConD RenovAtion AnD eXPAnSion in 2008

First U.S. mall to achieve greater than one billion dollars ($1B) in annual sales

Largest open-air mall in the world

More than 42 million visitors annually

Sales per square foot average $1,200 — $819 above industry standard

PrOjeCt DetAILS

CLIENT

general growth Properties

LoCaTIoN

Honolulu, Hawaii

SIzE

2.1 million sf

SErvICES

Master Planning

Architectural Design

interior Design

graphic Design

PrOjeCt DetAILS

CLIENT

general growth Properties

LoCaTIoN

Honolulu, Hawaii

SIzE

2.1 million sf

SErvICES

Master Planning

Architectural Design

interior Design

graphic Design

Manhattan village

Before After

Creating Value

AfterAfter

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Manhattan village

ReSULtS

Sales per square foot doubled in the first year following renovation

Captured coveted national brand tenants and increased occupancy rates to more than 95%

Five years after acquisition and renovation, property sold for $142 million, exceeding expectations by nearly 20%

After renovation, sales tax revenue from the center accounted for one-third of the city's overall sales tax revenue

iCSC Award of Merit — Renovation and expansion

PrOjeCt DetAILS

CLIENT

Madison Marquette

LoCaTIoN

Manhattan Beach, California

SIzE

550,000 sf

SErvICES

Site Planning

Architectural Design

interior Design

graphic Design

PrOjeCt DetAILS

CLIENT

Madison Marquette

LoCaTIoN

Manhattan Beach, California

SIzE

550,000 sf

SErvICES

Site Planning

Architectural Design

interior Design

graphic Design

West oaks

Before After

Creating Value

AfterBefore

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

West oaks

ReSULtS

occupancy increased from 70% to nearly 90%

Rent per square foot increased by nearly 30%

Sales per square foot increaed by more than 20%

After two years of ownership and oly a $10 million renovation investment, West oaks was sold in 2005 for an undisclosed, substantial profit to investment Properties of America

PrOjeCt DetAILS

CLIENT

Somera Capital Management

LoCaTIoN

Houston, texas

SIzE

1.07 million sf

SErvICES

Architectural Design

interior Design

Retail Design

PrOjeCt DetAILS

CLIENT

Somera Capital Management

LoCaTIoN

Houston, texas

SIzE

1.07 million sf

SErvICES

Architectural Design

interior Design

Retail Design

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Alderwood Mall

Before After

New Revenue Sources

Alderwood Mall

AfterAfter

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Alderwood Mall

ReSULtS

Median lease rates increased by 30%

Per square foot sales increased by 10% across the property

By adding nearly 200,000 square feet of space, revenue increased by nearly 50% between 2002-2004

Added 1,700 more jobs to the community

2005 Chain Store Age — First Place, open Air Shopping Center

2006 iCSC — Merit Award for Renovation or expansion of an existing Project

PrOjeCt DetAILS

CLIENT

general growth Properties inc.

LoCaTIoN

Lynnwood, Washington

SIzE

1.5 million sf

SErvICES

Master Planning

Architectural Design

interior Design

graphic Design

Scottsdale Fashion Square

Before After

New Revenue Sources

Scottsdale Fashion Square

AfterAfter

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Scottsdale Fashion Square

ReSULtS — 1998

opening sales exceeded expectations, while sales rose 10% for existing stores

A competing center's sales dropped 40%

nearly 100% lease rate

ReSULtS — 2008 & 2009

Sales per square foot still remain nearly double the industry standard

Largest mall in Arizona, averaging 10.3 million visitors annually

160,000 sf expansion anchored by Barney's new York, the first in Arizona, along with luxuary retailers such as Bottega venteta, grand Lux Cafe, Carolina Herrera, Armani exchange and Michael Kors

PrOjeCt DetAILS

CLIENT

Westcor

LoCaTIoN

Scottsdale, Arizona

SIzE

1998 – 1.8 million sf

2009 – 160,000 sf expansion

SErvICES

Master Planning

Architectural Design

interior Design

PrOjeCt DetAILS

CLIENT

Westcor

LoCaTIoN

Scottsdale, Arizona

SIzE

1998 – 1.8 million sf

2009 – 160,000 sf expansion

SErvICES

Master Planning

Architectural Design

interior Design

Royal Hawaiian Center

Before After

Community Engagement

Royal Hawaiian Center

AfterBefore

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Royal Hawaiian Center

ReSULtS

the center double the number of its tenants, now housing 110 shops and dining venues, as wellas a signature showroom

Located on one of the world's top five retail streets, Royal Hawaiian added the largest concentration of luxury flagship stores in Waikiki: Bvlgari, Cartier, FenDi, Hermès, Juicy Couture, kate spade, Savatore Ferragamo and tourneau, among others

2008 SADi Award — Renovation and expanded Power Center

2008 AiA Honolulu Merit Award — Renovation

2008 nAioP Hawaii Awards — Renovation excellence

PrOjeCt DetAILS

CLIENT

general growth Properties

LoCaTIoN

Honolulu, Hawaii

SIzE

2.1 million sf

SErvICES

Master Planning

Architectural Design

interior Design

graphic Design

PrOjeCt DetAILS

CLIENT

general growth Properties

LoCaTIoN

Honolulu, Hawaii

SIzE

2.1 million sf

SErvICES

Master Planning

Architectural Design

interior Design

graphic Design

Royal Hawaiian Center

SADi 2008 JUDging CoMMentS

"A perfect example of how to turn an outdated and inward focused mall into something much better."

"An impressive transformation from a brutalist box to a textured, animated retail experience"

Serramonte Center

Before After

Community Engagement

AfterBefore

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Serramonte Center

ReSULtS

transformed a "good" performer into one of the top performers in Capital & Countries' portfolio

Sales per square foot increased nearly 50%

Upon opening, lease rates increased from 90% to 98%

over 10 million consumers visit per year

generates more than $200 million sales annually

"Since the budget did not allow a wholesale makeover, there was careful consideration as to where money should be spent for the greatest return. As the leasing manager put it, the team "nailed it," by spending a major portion of the budge on the grand Court—which now defines the who center—while achieving a remarkable transformation of the concourses, using color, lighting and furnishing to create a clean, contemporary atmosphere."

Jones Lang LaSalle, Leasing Manager

PrOjeCt DetAILS

CLIENT

Capital & Counties USA inc.

LoCaTIoN

Daly City, California

SIzE

860,000 sf

SErvICES

Master Planning

Architectural Design

interior Design

Brand Development

environmental graphic Design

PrOjeCt DetAILS

CLIENT

Capital & Counties USA inc.

LoCaTIoN

Daly City, California

SIzE

860,000 sf

SErvICES

Master Planning

Architectural Design

interior Design

Brand Development

environmental graphic Design

R e n o v A t i o n & R e P o S i t i o n i n g C A L L I S O N

Alderwood Mall Scottsdale Fashion Square

Royal Hawaiian Center Manhattan village

Conclusion

Design doesn't have to be monumental, gimmicky or expensive to be effective

it needs to respond to your customer's sense of identity, tastes and preferences

Pay less attention to national trends and more attention to your customers' needs to maximize your return on investment.

Chris Beza, AiA

Director

chris.beza@callison.com

1420 Fifth Avenue #2400

Seattle, WA 98101

t 1 206 623 4646

M 1 206 972 9463

F 1 206 623-3625

www.callison.com